NEW BEARISH Plays

Johnson Controls Inc. - JCI - close: 36.26 change: +0.85

Stop Loss: 38.25
Target(s): 33.75, 31.00
Current Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
JCI spent months building a top with multiple failed rallies near resistance at $42.00. The past few weeks has seen the stock break support near $38, 37, and its 200-dma. Now the oversold bounce is reversing at resistance. This looks like an entry point to launch bearish positions. I am suggesting we keep our position size small to limit our risk. We'll start with a stop loss at $38.25. Our first target is $33.75. FYI: The Point & Figure chart for JCI is bearish with a $33 target.

-Small Positions Only-

Suggested Position: Short JCI stock @ current levels

- or -

buy the July $35 PUT (JCI1116S35) current ask $0.75

Annotated chart:

Entry on June 16 at $xx.xx
Earnings Date 07/25/11 (unconfirmed)
Average Daily Volume: 4.4 million
Listed on June 15th, 2011